Vivendi slides in NYSE trading

DavidB. Wilkerson

NEW YORK (CBS.MW) – French entertainment and utility giant Vivendi got off to a sluggish start on its first day of NYSE trading Tuesday.

The shares (V) fell 19 cents to $15.94

In its registration statement filed with the Securities and Exchange Commission, Vivendi translated its operating results listed under French generally accepted accounting principles (GAAP) to U.S. GAAP.

Under U.S. accounting rules, Vivendi says its overall shareholder equity value is “significantly greater, coming to 16,954 million euros ($14.7 million) on December 31, 1999, as compared to French GAAP shareholder's equity of 10,892 million euros ($9.4 million).”

Vivendi, which agreed in June to buy Seagram (VO) for $33.6 billion, expects that deal to close in November. The transaction has received regulatory approval in Canada and the U.S., but must still receive clearance in Europe.

The European Commission last month asked for more information about the deal, which will combine Vivendi, its pay television unit Canal Plus, and Seagram’s film, television and music assets.

Vivendi said the key to the deal was Seagram’s music division, the world’s largest. Analysts predict that Vivendi’s Vivazzi mobile Web portal could distribute that content to 150 million unique visitors across Europe by 2002.

In addition, Canal Plus, Europe’s largest pay TV company, will make significant use of the resources of Universal’s vast television and movie library.

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